Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities
Nifty faced strong resistance around the 24300–24310 zone, which coincided with the previous day’s high. The index gradually drifted lower through the session and eventually closed at 23867, down 1.63%. On the daily chart, Nifty formed a sizeable bearish candle, indicating strong selling pressure at higher levels. The index failed to sustain its recent pullback attempt and ended with yet another lower close, highlighting the continued dominance of bears over bulls.
Momentum indicators further support the negative bias. The RSI remains in a falling trajectory and is currently placed near 30, reflecting weak momentum. Meanwhile, a rising ADX signals strengthening bearish trend intensity, and the MACD remains well below the zero line, reinforcing the prevailing downside bias.
On the sectoral front, Nifty Pharma ended the day as the top sectoral gainer, continuing its strong run. Nifty Oil & Gas was the next best sectoral gainer, closing with a gain of 0.18%. On the other hand, Nifty Auto ended the day as a top sectoral loser, closing with a loss of over 3%, followed by Nifty Financial Services. With regards to stocks, JIOFIN & COALINDIA emerged as the top stock gainers amongst the Nifty pack while the BAJFINANCE & AXISBANK emerged as the top two losers.
Among broader markets, the Midcap Index engulfed the previous day’s candle, forming a clear bearish candle on the daily chart. The Smallcap Index, however, showed relatively better resilience. It formed a small-bodied red candle with an upper shadow, suggesting selling pressure emerging at higher levels. Overall, both benchmark and frontline indices failed to sustain higher levels and closed the session in the red, reflecting cautious sentiment and persistent selling pressure in the market.
The market breadth remained weak as the advance-decline ratio was titled in the favour of bears at day’s close. A total of 343 stocks out of the Nifty 500 universe ended in the red.
Nifty View
Going ahead, the immediate support for Nifty is placed in the 23750-23700 zone. Any sustainable move below this zone could result in Nifty extending its weakness towards 23500, followed by 23300 in the short term. On the upside, the zone of 23950–24000 zone is likely to act as a strong resistance.
Bank Nifty View
Bank Nifty also encountered stiff resistance near the 57000–57100 zone and gradually drifted lower through the day to close at 55736, down 2.13%. The index formed a large bearish candle, erasing the entire gain of the previous session and ending with a lower close, indicating renewed selling pressure.
For Bank Nifty, the immediate support is placed in the 55400–55300 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 54900, followed by 54500 in the short term. On the upside, the zone of 56100–56200 zone is likely to act as a strong resistance.